Examlex
What are spheres of security? Provide examples illustrating the different components.
Required Returns
The minimum profit or yield that investors demand for investing in an asset, considering the risk involved.
Risk Premium
The additional return an investor requires to invest in an asset over a risk-free rate, compensating for the risk of the investment.
Yield
The income return on an investment, such as the interest or dividends received, often expressed as an annual percentage based on the investment’s cost, current market value, or face value.
CAPM Approach
The Capital Asset Pricing Model, a formula used to determine the expected return on investment (ROI) by correlating the risk and expected return.
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